Alphabetical - L

Ladder Option	Whenever the underlying hits a "rung" or threshold price level the strike is reset and gains to that point cannot be lost.
Lag	The time between making the actual trade and settling
Lamda	see Vega
LCE	London Commodity Exchange - cocoa, coffee, sugar, etc Merged with LIFFE in 1996
LDC	??
Lead Manager	Bank(s) taking a key role in a syndicated loan or issue of securities like eurobonds
LEAPS	Long-term Equity Anticipation Securities - These are relatively long-term options on individual stocks or stock indices.
Leasing	A kind of rental agreement whereby companies purchase land or equipment and pay for it by instalments.
Letter of Credit	A method of financing a trade
Leverage	American term for gearing or making a small amount of money go a long way
Liability	The side of the bank's balance sheet dealing with borrowings - that is deposits, formal loans to others. Also share capital.
LIBID	London Interbank Bid Rate
LIBOR	London Interbank Offered Rate � most common maturity is 3 months
LIBOR Curve	LIBOR zero-coupon interest rates as a function of maturity.
LIBOR-In-Arrears Swap	Swap where the LIBOR rate observed on a date is paid on that date rather than one accrual period later.
Life Assurance	A form of saving whereby individuals invest a small monthly premium in return for a much larger sum later on.
Life Insurance	A scheme whereby individuals pay a premium to a company which guarantees to pay their dependents a lump sum in the veent of death.
LIFFE	London International Financial Futures Exchange.
LIMEAN	Average of the LIBOR and LIBID rates
Limit Move	The maximum price move permitted by the exchange in a single trading session.
Limit Order	An order that can be executed only at a specified price or one more favourable to the investor.
Liquidity	This is how quickly would the lender get their money back. The longer the notice period the higher the interest rate
Liquidity Preference Theory	A theory leading to the conclusion that forward interest rates are above expected future spot interest rates.
Liquidity Premium	The amount that forward interest rates exceed expected future spot interest rate.
Liquidity Ratio	Usually a percentage relationship between a banks liquid assets and its eligible liabilities.
Liquidity Risk	The risk that trading in an asset dries up and prices cannot be found or are subject to sharp fluctuations.
Liquidity Theory	The principle that investors will demand a greater reward for investing their money for longer periods of time.
Lloyds of London	The insurance market
LME	London Metal Exchange
Loan	??
Local Currency	??
Local Market Products	??
Locals	Traders dealing for themselves as speculators
London Clearing House	The main operating company of ICCH
Long	To be long in shares, bonds or foreign exchange is it own more than you have sold
Long Bond	??
Long Hedge	A hedge involving a long futures position
Long Only Fund	relative to an underlying index - constrained by index weights
Long Position	The agreement to buy
Long Protection	??
Long Short Fund	Long short portfolios are infinitely riskier than long only because losses on short-positions are unlimited.
Lookback Option	??
LORO	Alternative form of Vostro
LYON	Liquid Yield Option Note

Ladder Option Whenever the underlying hits a "rung" or threshold price level the strike is reset and gains to that point cannot be lost.
Lag The time between making the actual trade and settling
Lamda see Vega
LCE London Commodity Exchange - cocoa, coffee, sugar, etc Merged with LIFFE in 1996
LDC ??
Lead Manager Bank(s) taking a key role in a syndicated loan or issue of securities like eurobonds
LEAPS Long-term Equity Anticipation Securities - These are relatively long-term options on individual stocks or stock indices.
Leasing A kind of rental agreement whereby companies purchase land or equipment and pay for it by instalments.
Letter of Credit A method of financing a trade
Leverage American term for gearing or making a small amount of money go a long way
Liability The side of the bank's balance sheet dealing with borrowings - that is deposits, formal loans to others. Also share capital.
LIBID London Interbank Bid Rate
LIBOR London Interbank Offered Rate � most common maturity is 3 months
LIBOR Curve LIBOR zero-coupon interest rates as a function of maturity.
LIBOR-In-Arrears Swap Swap where the LIBOR rate observed on a date is paid on that date rather than one accrual period later.
Life Assurance A form of saving whereby individuals invest a small monthly premium in return for a much larger sum later on.
Life Insurance A scheme whereby individuals pay a premium to a company which guarantees to pay their dependents a lump sum in the veent of death.
LIFFE London International Financial Futures Exchange.
LIMEAN Average of the LIBOR and LIBID rates
Limit Move The maximum price move permitted by the exchange in a single trading session.
Limit Order An order that can be executed only at a specified price or one more favourable to the investor.
Liquidity This is how quickly would the lender get their money back. The longer the notice period the higher the interest rate
Liquidity Preference Theory A theory leading to the conclusion that forward interest rates are above expected future spot interest rates.
Liquidity Premium The amount that forward interest rates exceed expected future spot interest rate.
Liquidity Ratio Usually a percentage relationship between a banks liquid assets and its eligible liabilities.
Liquidity Risk The risk that trading in an asset dries up and prices cannot be found or are subject to sharp fluctuations.
Liquidity Theory The principle that investors will demand a greater reward for investing their money for longer periods of time.
Lloyds of London The insurance market
LME London Metal Exchange
Loan ??
Local Currency ??
Local Market Products ??
Locals Traders dealing for themselves as speculators
London Clearing House The main operating company of ICCH
Long To be long in shares, bonds or foreign exchange is it own more than you have sold
Long Bond ??
Long Hedge A hedge involving a long futures position
Long Only Fund relative to an underlying index - constrained by index weights
Long Position The agreement to buy
Long Protection ??
Long Short Fund Long short portfolios are infinitely riskier than long only because losses on short-positions are unlimited.
Lookback Option ??
LORO Alternative form of Vostro
LYON Liquid Yield Option Note